For the trading week that ended May 5, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.8% compared to the prior week when it increased by 7.1%. The index consists of 16 stocks, many of which are among the most widely held holdings of the 3 ETFs (MJ, CNBS, and THCX) that I consider to be a reliable barometer of the Canadian cannabis sector. MCCCI's differentiated business model is both weighted and market capitalization based because I believe that this approach best represents the current landscape of the Canadian cannabis sector. Now let us look at this week’s good, bad, and ugly stocks, shall we?

Image by Herbal Hemp from Pixabay 
 

The Good                  

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: TLRY +18.9%. Tilray Brands, Inc. recently acquired HEXO “on the cheap” per Seeking Alpha and there has been recent unusual call option activity in the stock. However, I remain neutral on TLRY going forward. 
        

The Bad                                                                        

There were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category
 

The Ugly

There were was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: DLTNF -24.1%. Delta 9 Cannabis Inc. is a 4^th quartile MCCCI cohort which may bounce back based on recent positive guidance. 
 

Valuation Metric Review

There was an increase of 12.3% increase in the “Big Four” (all of which increased) compared to the prior week when there was no change. Canopy Growth Corporation (CGC) increased 3.7% ending a 9-week decrease in the stock.
             

Recap

8 of the 16 stocks in the MCCCI increased. There was a decrease of 2.1% in the relative strength index compared to the prior week when there was a decrease of 6.0%. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report- Monday, May 1
The Canadian Cannabis Report- Monday, April 24
The Canadian Cannabis Report - Monday, April 14